Plans to flatten The Pheasant Inn on Abbey Road, Smethwick, were passed last year by Sandwell Council.
An application by Kappa Dulay of the Woodbourne Group stated "The building is unsafe due to unauthorised works by a third party."
Scott Duffy who works as a window cleaner in the area described it as a "real shame" to see so many local pubs closing.
He said: "I’m a local window cleaner and pass it all the time and was a bit shocked when I saw them knocking it down as I thought it was just getting another revamp.
"It is a shame as it’s a landmark I remember from when I was a kid, but it’s a sign of the times, pubs closing down all over the place I guess and no doubt a lot of people who have had good times in there will be sad and only have memories now it’s going."
Back in 1999, regulars at the Pheasant Inn described it as "one of the most pleasant in the country" after it won a gold award in a national competition.
The pub was given top marks for customer service, following a national survey by pub operator Allied Domecq Inns.
Locals have described the demolition as a real shame, with Baron Pete Mills saying: "Another bit of my childhood gone."
Kerry Emma Hodgetts said: "Had so many good times in here back in the day."
While Lisa Rowlands added: "I cannot believe another one is gone."